Plans to butcher the popular feed-in tariffs could threaten solar power schemes on Teesside. Jez Davison reports.

THE Government stands accused of strangling the life out of Teesside’s fledgling solar power industry.

Ministers are reducing support for large-scale solar installations in a bid to protect financing for smaller installations undertaken by homeowners and businesses.

Under Climate Change Minister Greg Barker’s planned changes to the feed-in tariff (FIT) scheme, subsidies for solar installations over 50 kilowatts (kW) could be slashed by up to 75%.

Introduced last year, the scheme offers cash to householders and companies for generating their own renewable power and sending it to the national grid.

It has proved popular, with more than 21,000 installations such as solar panels and wind turbines qualifying for a cash-back subsidy.

But business groups claim the planned changes could undo that good work by halting investment in the sector.

Mark Stephenson, policy advisor at the North East Chamber of Commerce (NECC), said: “The thing we want to stress to Government is that the review of the feed-in tariff is putting off investors on Teesside.

“We are aware of projects worth tens of millions of pounds that have been postponed.

“There is a danger that they may be cancelled altogether.

“It’s the uncertainty that’s the real killer - it is hurting investors.”

His concerns on the FIT are shared by local MP Alex Cunningham, who says the plans could force investors to turn their back on job-creating solar ventures.

The Stockton North MP quizzed Business Secretary Vince Cable on the issue - but was distinctly underwhelmed by his response.

“I had hoped the Business Secretary might have something to say to this fledgling green industry, which according to the Renewable Energy Association has been strangled at birth,” said Mr Cunningham.

“Unfortunately he had very little to say, simply stating that the decision was taken by the Department for Energy and Climate Change and that he would pass on my concerns.

“This is not good enough, given that the industry had been expected to create 17,000 jobs by the end of the year. If the Government’s plans go ahead, we can wave goodbye to those new jobs.

“Surely he could have said something to try to reassure a very angry industry about the future.”

Norton Sports Complex had planned to invest in a 1.5 megawatt solar energy scheme, which would have secured vital funds under the FIT. But the organisation said it was now reviewing the idea in light of the FIT proposals.

Mr Cunningham said: “If the tariff is reduced for schemes over 50kW then the scheme in Norton will not be viable.

“At a time when the number of people unemployed stands at 2.5m, we should be doing everything that we can to encourage the creation of green jobs.

“The Government’s review could end up costing jobs, rather than creating them.”

Almost nine out of ten (88%) respondents to a Cardiff University study said they were in favour of solar power, which attracted more support than any other energy-generating technology.

In contrast, only 32% gave their backing to oil and 34% to nuclear power.

The popularity of solar power has made the planned FIT changes all the more galling to supporters of the technology.

Greg Barker has been urged to re-think the plans, with shadow energy minister Huw Irranca-Davies branding him “the butcher of the feed-in tariff”.

That tag could stay with Barker for a long time if his controversial plans are given the green light.